Duties of Partner

Duties of Partner

Duty to carry on business

Every partner has to carry on the business of the firm to the maximum advantage of all the partners.

Duty to be true

Every partner must be true, just and faithful to one another. There must be utmost good faith and fair dealings.

Duty to render true accounts

A partner is bound to keep and render true and full accounts of the partnership. He must produce relevant vouchers for the expenses incurred by him and hand over to the firm all amounts which have come into his hands as a partner.

Duty to indemnity the firm

Every partner must indemnify the firm for any loss caused by his fraud or willful negligence in the conduct of the business.

Duty to share the loss

Every partner is bound to share the losses in the agreed ratio in the absence of an agreed ratio, it must be borne equally.

Duty to claim remuneration

Nopartner, includingamanagingpartner is entitled to any remuneration (salary or commission), for the work done by him, unless there is an agreement to the contrary.

Duty not to use firm’s property for personal use

The partnership property belongs to all partners. But a partner should not use the partnership property for his private purposes.

Duty not to carry on competing business

No partner can carry on a competing business. If he does so, he should surrender to the firm all profits earned by him in such business. No partner is allowed to earn secret profit.

Duty to act within scope of his authority

A partner must act within the scope of his authority.

Duty to consult other partners before assigning or transferring his interest in partnership

No partner can assign or transfer without the consent of all other partners his interest in the firm to any other person so as to make him a partner thereof.